Italian referendum on the horizon

Italian will hold a referendum on Sunday, and the sentiment enough to bring the market down over its political uncertainties. The market also fear Itaxit to the surface if the result on Sunday referendum rejected. Asian market mostly down for the day, and European market up excluding UK FTSE which down 0.42%.

Wallstreet ready for a positive day with the Dow Jones Industrial Averages Futures posted gain 31 points before market open. There are prelim GDP and consumer confidence report which might influence market direction.

Technical Analysis

Dow Jones Industrial Averages (INDU)

The bear probably expects more weakness Yesterday, but in the end, the index closed above Friday low. This means the bull still has upper hand and will drive the index up.

American Tower (AMT)

There are classic break and re-test setup in AMT which bear trader might observe. The price formed bearish engulfing candlestick and possible to move lower if the price can close below the candlestick pattern.

Verizon (VZ)

The bounce in VZ will encounter major resistance soon. SMA 200, horizontal S-R aligning in front of the price advance. Will VZ blasted through the resistance? Alternatively, will it stuck near it, formed a bearish pattern and reversed?

Other Watchlist

MCD – a break above SMA 200, a bullish sign.

V – Another re-test of SMA 200, it might break to the downside this time.

OXY – bearish engulfing pattern, incited by the drop in oil price, OPEC meeting this week might provide volatility.